MBAD 865
CHUKA UNIVERSITY
UNIVERSITY EXAMINATIONS
EXAMINATION FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS
ADMINISTRATION
MBAD 865: SALES MANAGEMENT
STREAMS: MBAD Y2S1 TIME: 3 HOURS
DAY/DATE: TUESDAY 05/10/2021 2.30 P.M – 5.30 P.M.
INSTRUCTIONS
SECTION A-QUESTION ONE (1)- IS COMPULSORY
SECTION B-ANSWER ANY OTHER TWO QUESTIONS
SECTION- A
QUESTION ONE (1) IS COMPULSORY (30 MARKS)
QUESTION ONE.
BANKS RAISE LOAN INTEREST RATES ON T-BILLS INCREASE
A rise in interest rates on short-term treasury bills is prompting banks to start raising their pricing
for loans, setting costly credit for homes and businesses in a recovering economy.
Absa Bank Kenya, for instance, has notified some clients that the base rate on their loans will
rise by half a percentage point to 7.5 percent effective June 4.
The lender attributed the rise to an increase in T-bill rates in recent weeks as more banks
consider increasing their base rates in an economic setting where the State does not have full
control over loan prices.
Page 1 of 4
CHUKA UNIVERSITY
UNIVERSITY EXAMINATIONS
EXAMINATION FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS
ADMINISTRATION
MBAD 865: SALES MANAGEMENT
STREAMS: MBAD Y2S1 TIME: 3 HOURS
DAY/DATE: TUESDAY 05/10/2021 2.30 P.M – 5.30 P.M.
INSTRUCTIONS
SECTION A-QUESTION ONE (1)- IS COMPULSORY
SECTION B-ANSWER ANY OTHER TWO QUESTIONS
SECTION- A
QUESTION ONE (1) IS COMPULSORY (30 MARKS)
QUESTION ONE.
BANKS RAISE LOAN INTEREST RATES ON T-BILLS INCREASE
A rise in interest rates on short-term treasury bills is prompting banks to start raising their pricing
for loans, setting costly credit for homes and businesses in a recovering economy.
Absa Bank Kenya, for instance, has notified some clients that the base rate on their loans will
rise by half a percentage point to 7.5 percent effective June 4.
The lender attributed the rise to an increase in T-bill rates in recent weeks as more banks
consider increasing their base rates in an economic setting where the State does not have full
control over loan prices.
Page 1 of 4
